Twitter has launched a poison pill takeover defense to fend off a hostile $43 billion bid from Tesla billionaire Elon Musk.
In a statement on Friday, the social media company said its board had unanimously approved a limited-term shareholder rights plan to “enable all shareholders to realize the full value of their investment in Twitter,” lasting one year will take.
If a group or individual acquires more than 15 percent of Twitter stock “in a transaction not approved by the board of directors,” other shareholders may purchase additional shares at a discount under the plan.
Such a plan makes it more difficult for a hostile bidder, who would have to buy more shares to gain control.
Musk offered Twitter $54.20 per share in cashwho valued the company at $43.4 billion days after taking a 9 percent stake in the company to become one of its largest shareholders.
Twitter launches poison pill to thwart $43bn bid by Elon Musk Source link Twitter launches poison pill to thwart $43bn bid by Elon Musk